Redacted_JA_Version_1.0.docx

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Federal Acquisition Regulation (FAR) Part 6 Justification, Supporting Procurements under FAR Part 12, FAR Subpart 13.501, and FAR Part 15

Purchase Request Number: To Be Determined (TBD) Contract Number: TBD Delivery Order Number : TBD Procurement Title: Cisco SMARTnet Joint Enterprise License Agreement (JELA) Contracting Office: Defense Information Systems Agency (DISA), Defense Information Technology Contracting Organization (DITCO) - Scott Estimated Value: $1.875 billion Statutory Authority: 10 U.S.C.§2304(c)(l ) and FAR 6.302-1

JUSTIFICATION FOR OTFAOC

OTFAOC Number:

Upon the basis of the following justification, I, as the Senior Procurement Executive, hereby approve the use of other than full and open competition of the proposed contractual action, pursuant to the authority of 10 U.S.C.§2304(c)(l ) and FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

JUSTIFICATION

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency: DISA 6910 Cooper Avenue Fort Meade, Maryland 20755

Contracting Office: DITCO - Scott 2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225

2. NATURE/DESCRIPTION OF ACTION(S):

(a) The nature of this action is to procure brand-name, commercial off-the-shelf Cisco SMARTnet support for users across the Department of Defense (DoD). The defense agencies have come together to leverage their user base and achieve better buying power, in accordance with the initiative set forth by the Under Secretary of Defense for Acquisition, Logistics, and Technology. The new contract will perpetuate existing coverage currently provided under multiple contracts with varying periods of performance (PoP). The new contract will consolidate SMARTnet support for over one million pieces of Cisco equipment and reduce the administration of Cisco contracts across the DoD. The recommendation is to execute a firm fixed-price single award, indefinite delivery/indefinite quantity (IDIQ) contract to Cisco Systems Inc. (Cisco), or one of its certified Gold Partners using open market procedures.

Cisco SMARTnet JELA

(b) The PoP for the contract will consist of a 1-year base period, estimated to begin on August 29, 2014, and include four I -year option periods, for a total contract life of 5 years. The total lifecycle value for this requirement is estimated at $1,875,000,000. The minimum guarantee for the IDIQ is $2,500 and will be satisfied by the issuance of the first delivery order. All funding will be obligated by the issuance of delivery orders. The applicable North American Industry Classification System code is 511210, Software Publishers.

3. DESCRIPTION OF SUPPLIES/SERVICES:

(a) The objective of this procurement effort is to provide flexibility to enable the Joint Information Environment (JIE) to meet current and future Cisco SMARTnet support requirements, while ensuring DoD receives uninterrupted, continuous network access. This acquisition will provide brand name SMARTnet support through Cisco or a Cisco certified Gold Partner. Gold Partners meet the requirement of 24 hours a day, 7 days a week support for Internetwork Operating System (IOS) updates. Gold Partners have specialization requirements meeting the JELA's complexity and ensuring the DoD's infrastructure remains operational.

They include: Advance Unified Communication, Advanced Routing and Switching, Advanced Security, and Advanced Wireless Local Area Network. Given the size and complexity of the DoD's network, these certifications ensure the authorized partners have the skills necessary to maintain the DoD's infrastructure. Under the JELA, SMARTnet provides the required support for all Cisco hardware and software for DoD. Cisco SMARTnet consists of software support, updates, revisions, error detection and correction, and rights to new releases and/or versions. In addition, software that is eligible for SMARTnet is entitled to major and minor upgrades.

SMARTnet support provides advanced hardware replacement, minimizing the potential for network downtime as well as covering the licensed IOS. This allows DoD to extend the useful life of its investment by increasing current functionality and ensuring compliance with network security policies and regulations. SMARTnet support also provides telephone and email access via the technical assistance center, which provides engineering support through certified Cisco network experts in voice, video, and data communications networking technology. The agencies will also have access to Cisco's website, which provides 24-hour online product and technology information, interactive network management, and troubleshooting tools.

(b) The scope of the proposed contract addresses SMARTnet support for the known baseline inventory of Cisco products. The contract will provide DoD the ability to reduce the support of expired licenses, reduce the software product, as well as provide the ability to remove hardware products. DoD may increase and decrease products as the enrollee requirement dictates, not to exceed the contract ceiling amount of $1,875,000,000. An installed base value reconciliation will allow DoD to fluctuate upward or downward, depending on the inventory reconciliation that occurs annually. Purchase of new SMARTnet support may increase the licensing and support price, whereas end-of-life Cisco equipment may reduce the licensing and support price.

(c) The PoP and estimated lifecycle value for this action is as follows:

I Base Year August 29, 2014 through August 28, 2015 $ 375,ooo,ooo I st 28, 2016 st 28, 2017 $ 375,000,000 $ 375,000,000 $ 375,000,000 $ 375,000,000 $1,875,000,000

4. IDENTIFICATION OF STATUTORY AUTHORITY:

Only one responsible source and no other supplies or services will satisfy agency requirements. This acquisition is conducted under the statutory authority of 10 U.S.C§2304(c)(l ) and the regulatory authority of FAR 6.302-1.

5. DEMONSTRATION OF CONTRACTOR'S UNIQUE QUALIFICATIONS:

(a) Description of events:

Cisco is fully implemented and integrated into DoD's architecture and has been for more than 10 years. DoD's Information Assurance regulations require each device operating on the network to have the latest software updates to defend against potential security threats, and functional areas require software and hardware replacement in the event that a device fails. The purchase of proprietary SMARTnet support is required to meet DoD regulations .

(b) Justification:

(1) Minimum Government requirements. See paragraph 3(a) above.

(2) Proposed sole source contractor. Not Applicable.

(3) Discussion regarding cause of the sole source situation. Not Applicable.

(4) Demonstration of unique source.

i. To duplicate another functional replacement initiative through full and open competition is not in the best interest of the government at this time in terms of both costs and efficiency. DoD relies on the fully implemented Cisco SMARTnet support to sustain its network routing and switching capability. To procure and rewrite applications to function with replacement products throughout DoD at this time would result in substantial work interruptions, creating unnecessary obstacles, restraints, and losses in efficiency. At this time, SMARTnet is the only support that can fulfill the DoD requirements. In terms of price, DoD has invested $REDACTED into Cisco hardware and software capabilities. Ifthe government were required to replace the existing Cisco architecture, it would lose its current investment in the existing Cisco products and, as a result, would have to fund the required installation and deployment of a new system, which would be cost prohibitive. Assuming it would require the same investment in another vendor's technology to replace the current Cisco equipment, it would require a time-phased approach over many years. The initial Cisco hardware investment was made through competitive acquisitions, and repeating this process does not guarantee the government would award to a new vendor. This also does not negate the need to support the current environment while transitioning to a future environment, which means the agencies would incur duplicative costs for support. The cost of fielding and installation, labor, training, and process revisions in order to move to a new environment would be in addition to the cost of hardware and would significantly increase the total cost to the government.

ii. Introducing a new manufacturer to support Cisco hardware and software will not only violate the copyright and patent laws as well as void the warranties associated with the Cisco products currently in place, but it will create an unacceptable security environment for the network by eliminating security updates to essential Cisco network components, placing the reliability of the network at high risk. Due to the criticality of the equipment, as security threats are identified, updates to the IOS must be made. Ifthe network failed due to hardware and software failure, day-to-day work functions, online collaboration, video teleconferencing capability, and command and control of forces in the field would be severely degraded.

iii. In order to ensure DoD's secured network is not comprised, it is critical for Cisco devices to be kept current with the latest software updates, which are only available through the Cisco SMARTnet support. Nearly all Cisco hardware is operated by an IOS, which allows the user to configure the equipment, control the flow of information, and establish security protocols. The IOS updates are mandatory for ensuring DoD's security posture. As with most Information Technology (IT) equipment, the Cisco equipment, which is currently installed, requires frequent updates to patch security vulnerabilities. The devices cannot be legally patched without SMARTnet support.

(5) Procurement discussion:

Cisco is the original equipment manufacturer (OEM) for Cisco SMARTnet. Cisco owns all proprietary rights to the source code. Only Cisco or its certified Gold Partners can provide the required SMARTnet support. Cisco and its Gold Partners are the only authorized resellers that meet the requirement of twenty-four (24) hours a day, seven (7) days a week support (24x7) for Internetwork Operating System (IOS) updates. Gold Partners have specialization requirements meeting the JELA's complexity and ensuring the DoD's infrastructure remains operational. They include: Advance Unified Communication, Advanced Routing and Switching, Advanced Security, and Advanced Wireless Local Area Network. Given the size and complexity of the DoD's network, these certifications ensure the authorized partners have the skills necessary to maintain the DoD's infrastructure. Accordingly, no other vendor or distributor can legally obtain access to the software; nor can they make duplicate copies, since it is protected by copyright and patent laws.

(6) Impact:

See paragraph 5(b)(4) above.

image1.jpeg image2.jpeg image3.jpeg image4.jpeg